The Trump administration will no longer allow illegal migrants to get Federal Housing Administration (FHA) mortgages, Housing and Urban Development Secretary Scott Turner declared on Wednesday.
“Today, HUD terminated Biden’s taxpayer-backed FHA mortgages for illegal aliens,” Turner told X. “American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally.”
On Tuesday, a HUD official warned FHA-approved mortgage lenders that the agency will no longer consider any “non-permanent resident” as eligible for government-backed, low-income home loans.
“Currently, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country,” wrote Deputy Assistant Secretary for Housing Jeffrey Little in a letter to mortgagees.
“This uncertainty poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”
Little stated that it is unclear how many non-permanent residents have received FHA mortgages, but that no more will be issued.
“In the past, FHA’s residency requirements have required Mortgagees to document the Borrower’s lawful residency status demonstrating longterm financial stability and eligibility for federal programs,” they stated. “FHA does not retain citizenship or residency data from the loan application and therefore does not maintain information on the number of non-permanent residents who have received FHA-insured loans under past policies.”
“This update ensures that FHA’s mortgage insurance programs are administered in accordance with Administration priorities while fulfilling its mission of providing access to homeownership,” according to Little.
In 2021, the Biden administration directed FHA mortgage lenders to let non-permanent residents enrolled in the Deferred Action for Childhood Arrivals (DACA) program access to government-backed mortgages.
HUD’s new policy will prevent DACA participants (undocumented migrants brought to the US as youngsters) and those with pending asylum applications from obtaining FHA loans.
“HUD prioritizes Americans over illegal aliens,” Turner stated in a separate X post. “@POTUS promised to end taxpayer subsidies for illegals, and today, we put an end to illegals receiving FHA home loans.”
The policy change came the same week that HUD announced a collaboration with the Department of Homeland Security to prohibit illegal migrants from public housing.
HUD cited Center for Immigration Studies estimates, which suggest that around 59% of illegal migrant households receive from at least one government welfare program, costing roughly $42 billion.
According to the government, at least 9 million people live in public and subsidized housing “without proper information sharing to determine eligibility status.”
